Outlet Number 263

January 2010

Chugach Electric Association’s

w w w . c h u g a c h e l e c t r i c . c o m

Chugach legislative agenda outlinedChugach has set a 2010 leg-islative agenda that supports the creation of a regional generation & transmission corporation, attends to lo-cal issues and continues to monitor federal issues that could impact the rates paid by members.

Chugach leadership discussed its legislative agenda with decision makers and others at its annual legislative reception Dec. 8.

State issuesCook Inlet resource man-agement planDuring the 2009 legislative session, Chugach promoted the idea that the state needed to take an overarching view of the Cook Inlet natural gas basin. Chugach said the state should consider the natural gas in the basin as a valuable regional resource and develop an appropriate management plan for it. The administration has undertaken a Cook Inlet natural gas study. Chugach will continue to remain inter-ested in Cook Inlet natural gas issues and the wise manage-ment of the resource.

Greater Railbelt Energy & Transmission CorporationAt the top of Chugach’s state legislative agenda is support for legislation to create GRETC – the Greater Railbelt Energy & Transmission Corporation. GRETC would be a new privately owned, utility-gov-

erned, not-for-profit company with public responsibilities defined in law. Over time, it would take over the mission of providing for the generation & transmission needs of the six Railbelt electric utilities. Stud-ies led by the Alaska Energy Authority have shown that consolidating G&T functions in an organization like GRETC would save money for regional ratepayers. Bills to create GRETC were introduced in both the House and Senate in 2009.

Electronic votingChugach will seek a change to the state statute covering electric and telephone coopera-tives to allow members to vote electronically in the annual elec-tion for directors and proposed bylaw changes – if a utility’s by-laws allow it. Members amend-ed the Chugach bylaws some years ago to allow electronic voting in the event state law is changed. Other cooperatives also support the idea.

Federal issuesCarbon penaltiesDifferent ideas are under discussion in Washington D.C. about penalizing carbon emissions. Ideas range from taxes to various cap-and-trade scenarios.

Renewable En-ergy StandardsThese standards would mandate that a percentage of the power sold by utilities of a certain size come from qualifying renewable resources. While Chugach is in favor of renewable energy – and has adopted a vision of mov-ing from a generation mix that

is 90 percent fossil fuel based and 10 percent renewable – it is not a case of renewables at any price. Rather, renewables need to make economic sense for customers.

Energy Efficiency Resource StandardsThese standards are once again a mandate – a requirement that a utility must reduce the amount of energy sold over time or be penalized. Chugach is opposed to proposals that would raise the price of power without a concurrent benefit to ratepayers.

Local issuesSouthcentral Power ProjectChugach and An-chorage Municipal Light & Power have joined in a project to build a new, efficient, natural gas-fired, 183-megawatt, combined-cycle power plant known as the Southcentral Power Proj-ect. SPP will be built on land at Chugach. Construction is scheduled for 2010-2012 and commissioning in 2013. Some land issues require attention in 2010, including concluding the purchase of adjacent Anchorage Water & Wastewater Utility land for storage and a related sale of Chugach land at the Huffman Substation for an AWWU water tank. In addition, if the Assem-bly adopts a particular change to Title 21, Chugach will seek a zoning change from I-1 to I-2.

GRETC

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Southcentral Power Project 183MW Combined Cycle Power Plant

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Members can help advance Chugach’s legislative agenda

By Rebecca Logan, Board Chair

See Members, page 2

See Legeslative agenda, page 2

As regular readers of the outlet are aware, Chugach is facing ever increasing difficulties in providing affordable, stable and environ-mentally responsive electricity to our members. Utilities across the nation and especially here in Alaska share these common chal-lenges. The six Railbelt electric utilities have a unique opportu-nity to work together to solve our energy problems. Two years ago, Chugach recommended to Legislative committees that a unified entity be created to address growing regional energy problems. These include fuel supply, the development of alternative energy and financing. We suggested the State help the unified entity achieve its mission at the least cost, most-affordable manner.

We have worked diligently since that initial testimony to en-courage participation by other Railbelt utilities, and worked cooperatively with the State administration on the enabling legislation introduced in the last legislative session. The legisla-tion, as crafted would create an organization called GRETC – the Greater Railbelt Energy and Transmission Corporation. The entity would take on the difficult and costly task of developing an energy future that is not only less fossil fuel dependant but one that provides affordable electricity and creates energy conditions allowing our business community to grow and prosper.

So what can you, a member of a cooperative association do to influence the outcome of our ef-forts? In the democratic process

Personnel policy “It is a policy of Chugach Electric Association, Inc., to recruit, hire, train, compensate and promote persons without regard to race, color, religion, national origin, sex, marital status, pregnancy, parenthood, disability, veterans status, age or any other classification protected by applicable federal, state, or local law.” Chugach is also an affirmative action employer.”

Contact us Main number 563-7494Toll free (800) 478-7494Member Services 563-7366Member Services fax 762-467824-hour payment line 762-7803Credit 563-5060Power theft hotline 762-4731Danger tree hotline 762-7227Street light hotline 762-7676Underground locates 278-3121Regulatory Commission of AK (800) 390-2782 or 276-6222To report a power outage In Anchorage 762-7888 Outside Anchorage (800) 478-7494

Monthly residential service costs(based on 700 kwh)

Corporate Mission: Through superior service, safely provide reliable and competitively priced energy.

Corporate vision: Powering Alaska’s future

Member Services lobby: 5601 Electron Drive

Monday - Friday 8 a.m. - 6 p.m.

Member Services phone: Monday - Friday 8 a.m. - 6 p.m.

Hours Main office:

Monday - Friday8 a.m. - 5 p.m.

The Chugach OutletA Publication of Chugach Electric Association, Inc.

5601 Electron DriveP.O. Box 196300

Anchorage, Alaska 99519-6300

Customer charge/month $ 8.00

Energy charge $0.07181 x kwh = $50.27

Fuel $0.04231 x kwh =

Purchased power $0.00463 x kwh =

$29.62

$ 3.24

(If approved by the RCA, anticipated fuel & purchased power adjustments effective 1/1/10 – 3/31/10)

Subtotal $ 91.13

2% MOA Underground Charge = $ 1.82

RCC charge $0.000432 x kwh = $ 0.30

Total bill $93.25

Member number hide-n-seekFind your member number in the Outlet and get a $100 credit on your electric bill.

Call Chugach’s service center at 563-7366 to claim your prize.

O’Malley Road project energized

AEA releases integrated resource planRegional plan seeks best energy options

Legislative agenda (cont’d from page 1)

Members (cont’d from page 1)

Upcoming election Two directors will be elected to the Chugach board in the upcoming 2010 election. Call 762-4736 for more information.

Candidate applications may be found on Chugach’s Web site at www.chugachelectric.com.

In December the Alaska Energy Authority released the results of the Railbelt Integrated Resourc-es Plan – a study of how best to meet regional energy needs for the next 50 years.

Study authors Black & Veatch concluded that the preferred re-source plan includes a sequen-tial series of steps and projects that include {28793} energy efficiency, landfill gas genera-tion, Fire Island wind power, the Southcentral Power Project, the Glacier Fork hydro proj-ect, Nikiski-area wind power, simple-cycle turbine generation in Anchorage, combined-cycle

generation in Fairbanks, paral-lel pursuit of Chakachamna/Susitna/Glacier Fork hydro project feasibility, and multiple transmission projects to better link the region’s generation sites to customers.

The study also concluded that the proposed Greater Railbelt Energy & Transmission Corpora-tion could serve as the vehicle to finance and implement the plan on behalf of the Railbelt utilities and the customers they serve.

The draft RIRP report can be found at:

www.akenergyauthority.org

In late November Chugach energized a new section of 138-kilovolt transmission line constructed in 2009 along O’Malley Road between the Alaska Railroad track and Elmore Road. With that action, Chugach electrically connected the South Anchorage Loop – a series of projects begun 8 years earlier. The goal was to improve local and regional reliability by building a new transmission substa-tion in South Anchorage and linking it to Chugach’s two other Anchorage Bowl transmission substations. The work along O’Malley included converting existing overhead 12.5-kv distribution lines to underground facilities and installing a new segment of underground 34.5-kv subtransmission line.

Dowling Substation land swapWhen the Municipality pro-ceeded with the extension of Dowling Road between Lake Otis Parkway and Elmore Road, it took part of the land that Chugach has under permit on the north edge of its Dowling Substation. A land swap for adjoining land to the west to compensate Chugach requires a vote of the people since it has been set aside as parkland. The issue could come before the voters in the April 2010 munici-pal election.

Overhead-to-underground conversionsUnder an ordinance passed in 2005, utilities assess a charge to customers in the Municipality to raise funds to convert existing overhead lines to underground service. The 2 percent charge

raises about $3 million per year from Chugach’s Anchorage customers. The 2010 funds are earmarked for recent work along O’Malley Road and an upcoming Victor Road project.

Smart PowerBuilding upon prior efforts, Chugach launched the Smart Power program in 2008 to promote energy efficiency and conservation. In 2009, ML&P and Matanuska Electric As-sociation joined in efforts to help customers purchase and use more efficient lighting. In 2010, the program will focus on education.

you have an important voice and by using it you will make a difference. The two bills before the legislature are HB 182 and SB 143. I encourage you to read them and let your legisla-tors know where you stand on the Railbelt utilities working together. Let your legislators know your feelings about the State helping the utilities create a better and affordable energy

future. For years, State energy assistance has been extended in many areas of Alaska and it is time to help on an equally weighted basis those citizens living in the Railbelt communi-ties.

You can make a difference. You'll find bill and contact infor-mation at http://w3.legis.state.ak.us/index.php.